Turkish home appliance maker Arçelik said Tuesday it has agreed to sell its 60% stake in a joint venture with the Japanese Hitachi Global Life Solutions under a share purchase agreement worth approximately $261 million, thus exiting the venture.
Accordingly, the Turkish company will transfer its stake in the venture called Arçelik Hitachi Home Appliances to Hitachi Global Life Solutions, the company said in a statement shared at the Public Disclosure Platform (KAP).
Under the deal, Arçelik will receive $205 million in cash at closing, with deferred payments totalling $56 million to be paid in instalments over three years, it said.
The final price will be adjusted at closing to include 60% of Arçelik Hitachi's net cash exceeding $56 million, the company said in a statement.
Türkiye is a major white goods producer, but sales, exports and production in the sector in Türkiye shrank last year as rising costs weighed on competitiveness.
The transaction marks Arçelik's exit from the joint venture formed with Japan's Hitachi in 2020 and includes the transfer of 12 subsidiaries, among them manufacturing plants and R&D centers in China and Thailand.
At 7:04 a.m. GMT, Arçelik shares were around 3% higher, though still about 37% below their May 2024 peak.
Hitachi said the deal is part of a broader restructuring. It plans to fold its home appliances operations, including its remaining 40% stake in Arçelik Hitachi, into a new company to be set up under a strategic partnership with Japanese electronics retailer Nojima Corporation.
If that restructuring is completed, Arçelik's 60% stake will ultimately be acquired by the new company under Nojima's indirect control. If not, Hitachi will directly purchase Arçelik's stake.
Completion is subject to regulatory approvals and the completion of Hitachi's planned spin-off. The parties expect the closing within 12 months.
